How Counterfeit Products Hurt International Trade

Saturday, April 27, 2013

Let's say you have decided to start your own business. You wish to set up a retail or wholesale outlet that distributes clothing, food, or electronics throughout your region, state, or even worldwide. You know it's important to get products to sell at cost, so you can earn a profit through sales. You may discover, however, that the price of goods may be too much to handle as you prepare to launch. The temptation to cut corners with products that aren't quite genuine is tempting.

When you visit a global trade portal looking for potential suppliers, you want to be sure each company you deal with is legitimate, and offers a fair price. If you suspect a vendor wants to sell you counterfeit goods - knock-offs of top shoe and clothing brands, jewelry and electronic devices - know that if you agree you hurt not just your business, but put the economy at risk.

Counterfeiters Hurt Global Trade

When you deal with dubious manufacturers, you contribute to the weakening of supply chains. As more money flows into these operations, it takes income away from legitimate workers, and as the poor quality of fake merchandise is revealed it may dilute the trustworthiness of the brand. Word of mouth is a powerful marketing tool, and if a consumer isn't observant enough to tell a false item from a genuine one, it won't matter to them when they receive faulty merchandise. They will see the logo and let people know not to buy.

When you, as a business owner, deal with counterfeiters you put your own reputation at risk, too. Should product fall apart or break down shortly after purchase, customers will know not to offer repeat business. If injury or illness results, too, you could be held liable.

It's important to engage in international trade exchanges with reputable suppliers in order to maintain a successful business. Browse any supply chain portal for information on solid suppliers of clothing, antiques, household items and perishables. Don't fall into the temptation of cutting corners with counterfeit items - it could prove costly later on.